logging in or signing up product life cycle aSGuest81338 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: Embed: Flash iPad Copy Does not support media & animations WordPress Embed Customize Embed URL: Copy Thumbnail: Copy The presentation is successfully added In Your Favorites. Views: 2091 Category: Entertainment License: All Rights Reserved Like it (0) Dislike it (0) Added: January 08, 2011 This Presentation is Public Favorites: 4 Presentation Description Phases of product life cycle Comments Posting comment... Premium member Presentation Transcript PRODUCT LIFE CYCLE: PRODUCT LIFE CYCLEWhat is a Product?: What is a Product? A PRODUCT is anything that can be offered to a market usually to satisfy a want or needSlide 3: There are 4 general categories of ‘products’ that r marketed: Goods Services Places Persons Can you think of an example for each category?Goods: GoodsServices: ServicesPlaces: PlacesPersons: PersonsProduct Life Cycle : Product Life Cycle Every PRODUCT has a life cycle and asserts four things about a PRODUCT : PRODUCTS have a limited life PRODUCT sales pass through different stages each posing different challenges, opportunities n problems to the seller Profits rise n fall at different stages PRODUCTS require different marketing, financial, purchasing strategies at each stageSlide 9: Product Life Cycle.... No of sales Time line Research & Development (R&D) Launch / Introduction Growth Maturity Saturation DeclineProduct Life Cycle......: Product Life Cycle...... Research n Development Phase: Begins when the company develops a new-product idea Sales are zero Investment costs are high Profits are negativeProduct Life Cycle......: Product Life Cycle...... Introduction Phase: Low sales Prices tend to be high becoz costs r high Negative profits Innovators are targeted Little competitionProduct Life Cycle......: Product Life Cycle...... Growth : Sales rapidly rise Prices remain where they r , or fall slightly Rising profits Promotional expenditure may increase or decrease depends upon competition New customers also start buying Growing competitionProduct Life Cycle......: Product Life Cycle...... Maturity Phase : Usually lasts longer than previous stages Divided into three phases: Growth-sales growth rate starts to decline Stable-sales flatten becoz of market saturation Decaying maturity-the absolute level of sales begin to decline and customers start switching to other productsProduct Life Cycle......: Product Life Cycle...... Decline Phase : Sales and profits decline Some companies withdraw their products from market Those remaining reduce number of products High prices on spare parts Focuses on cost reductionMarketing strategy-Introduction Phase: Marketing strategy-Introduction Phase Rapid-skimming strategy (high price/high promotion). Slow-skimming strategy (high price/low promotion). Rapid-penetration strategy (low price/high promotion). Slow-penetration strategy (low price/low promotion).Marketing strategy-Growth Phase: Marketing strategy-Growth Phase Improve service quality and add new service features and elements Enter new market segments Use new channels of distribution Lower prices to attract more price-sensitive customers Shift from product awareness advertising to product-preference advertisingMarketing strategy-Maturity Phase: Marketing strategy-Maturity Phase Market-modification strategy Increase frequency use by current consumers Look for new target market Product-modification strategy Quality improvement Feature improvementMarketing strategy-Decline Phase: Marketing strategy-Decline Phase Reduce cost Reduce price Phase out weak items Include special offers You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.